Senate Housing Bill Requires All Credit Card Companies to Report Transactions to the Government

Freedom Works ^ | 06.09.08 | Adam Brandon

[Dr. Marten]

Senate Housing Bill Requires eBay, Amazon, Google, and All Credit Card Companies to Report Transactions to the Government
Broad, invasive provision touches nearly every aspect of American commerce.

Contact:  Adam Brandon
Phone:   202-942-7612
Email: abrandon@freedomworks.org

Washington, DC -  Hidden deep in Senator Christopher Dodd's 630-page Senate housing legislation is a sweeping provision that affects the privacy and operation of nearly all of America’s small businesses. The provision, which was added by the bill's managers without debate this week, would require the nation's payment systems to track, aggregate, and report information on nearly every electronic transaction to the federal government.

Call Congress and Tell Them to Oppose The eBay Reporting Provision in the Housing Bill: 1-866-928-3035

FreedomWorks Chairman Dick Armey commented: "This is a provision with astonishing reach, and it was slipped into the bill just this week. Not only does it affect nearly every credit card transaction in America, such as Visa, MasterCard, Discover, and American Express, but the bill specifically targets payment systems like eBay's PayPal, Amazon, and Google Checkout that are used by many small online businesses. The privacy implications for America's small businesses are breathtaking."

"Privacy groups like the Center for Democracy and Technology and small business organizations like the NFIB sharply criticized this idea when it first appeared earlier this year. What is the federal government's purpose with this kind of detailed data? How will this database be secured, and who will have access? Many small proprietors use their Social Security number as their tax ID. How will their privacy be protected? What compliance costs will this impose on businesses? Why is Sen. Chris Dodd putting this provision in a housing bailout bill? The bill also includes the creation of a new national fingerprint registry for mortgage brokers.

"At a time when concerns about both identity theft and government spying are paramount, Congress wants to create a new honey pot of private data that includes Social Security numbers. This bill reduces privacy across America's payment processing systems and treats every American small business or eBay power seller like a criminal on parole by requiring an unprecedented level of reporting to the federal government. This outrageous idea is another reason to delay the housing bailout legislation so that Senators and the public at large have time to examine its full implications."

From the Senate Bill Summary:

Payment Card and Third Party Network Information Reporting. The proposal requires information reporting on payment card and third party network transactions. Payment settlement entities, including merchant acquiring banks and third party settlement organizations, or third party payment facilitators acting on their behalf, will be required to report the annual gross amount of reportable transactions to the IRS and to the participating payee. Reportable transactions include any payment card transaction and any third party network transaction. Participating payees include persons who accept a payment card as payment and third party networks who accept payment from a third party settlement organization in settlement of transactions. A payment card means any card issued pursuant to an agreement or arrangement which provides for standards and mechanisms for settling the transactions. Use of an account number or other indicia associated with a payment card will be treated in the same manner as a payment card. A de minimis exception for transactions of $10,000 or less and 200 transactions or less applies to payments by third party settlement organizations. The proposal applies to returns for calendar years beginning after December 31, 2010. Back-up withholding provisions apply to amounts paid after December 31, 2011. This proposal is estimated to raise $9.802 billion over ten years.

 

[TheZMan]

http://www.freerepublic.com/focus/f-news/2033730/posts
and
http://www.freerepublic.com/focus/f-news/2033470/posts

Search based on title :)

[stuartcr]

Isn’t transaction data available already?

[Dr. Marten]

I suppose this is for our own security as well? /sarcasm

[Dr. Marten]

Thanks. I searched on Title and Keyword. Not the first time the search function has failed.

[WayneS]

Chip, chip, chip.

[TheZMan]

Ah, my bad. I didn’t realize you’d been around here that long. And yes, the search feature is... finicky.

[HappyinAZ]

Someone please explain to me the last line about it raising 9 billion dollars....are they proposing a tax on these transactions?

[Zathras]

Its so they can retroactive collect taxes once they implement internet sales tax.

[IamConservative]

Someone please explain to me the last line about it raising 9 billion dollars....are they proposing a tax on these transactions?

On the surface, it seems like they are eying the seller for not reporting income?? As for the buyer, I think it is just a matter of time before we have to pay sales tax on internet purchases made out of state. Politician aren't going to leave that alone.

[Eric in the Ozarks]

Once government does for credit cars what they did for mortgages, we’ll be in fine shape.

[Dilbert San Diego]

This is troubling in two ways, I think.

Number 1, why does the gov’t need to routinely collect information on people’s spending? So many of us use credit cards and debit cards for everyday spending, that a paper trail could be constructed for all of us. Where is our right to privacy, or does that only apply to abortion rights?

Number 2, this was slipped into a bill on housing. It is an amendment to a bill on a completely unrelated subject. This is something that should be changed. I know Congress sometimes does business this way, but it seems to be that legislation to collect this private data on Americans should be fully debated and discussed on its own merits. Why do we need to do this as gov’t policy? It should be voted on separately, if it’s really something that the Congress thinks should be done. It shouldn’t be hidden in an unrelated bill.

[antiRepublicrat]

Isn’t transaction data available already?

Through a warrant or subpoena, and lately through national security letters. Now the government's not even bothering to ask for individual data where necessary: Just give it all to us up front.

[IM2MAD]

And how much would it cost to implement this scheme? How many new fed employees would be needed to monitor the millions of daily transactions? What will their salaries and retirements cost? Probably more than the 9-plus billion in the ten years this supposedly will generate.

[Right Cal Gal]

But President Bush is trampling on our civil liberties and invading our privacy looking for wireless phone calls between terrorists, right?

[gathersnomoss]

Communism’s ugly step sister, socialism, pushed it’s nose into the tent long ago. “There’s no turning back, my friend. There’s no turning back.....” Thank you, Steve Miller Band.

If you don’t think so, rewind about 45 to 50 years. How have “things” changed thus far?

It is back to fantasy land, my doctor recommends it for my well being.

[Diogenesis]

Congress, ever bothered about invasion of terrorists’
and illegal invaders’ ‘rights’, never misses
an opportunity to nibble away at its constituents’ rights.

[BenLurkin]

Oh my!

[Blood of Tyrants]

Violation of the 4th Amendment protection against unreasonable search and seizure?

[Guenevere]

bttt